XCMG Pushes for Carbon Neutrality within Its Operating Boundaries by 2049

SHANGHAI, Feb. 21, 2022 /PRNewswire/ -- XCMG (SHE:000425) releases a program of action (PoA) for peak carbon and carbon neutrality, detailing planning, implementation and actual safeguard measures of sustainable transformation paths — including low-carbon transformation of energy consumption structure, green and intelligent manufacturing integration and upgrade, emissions reduction with supply chain alliance and digitalized, intelligent advancement.

The PoA also specifies XCMG's short-, mid- and long-term targets in achieving "dual carbon" goals, that by 2035, power generated from renewable energies will account for 50 percent of XCMG's total electricity use, product penetration of new energy products will thrive to exceed 35 percent, and the carbon footprint of key products including excavators and cranes will be reduced by 32 percent compared to 2020.

"The action plan for 'dual carbon' goals aims to establish a uniform and precise approach in terms of strategy to help XCMG in building a green value chain with innovation-enabled, low-carbon intelligent construction machinery solutions achieved through technology, manufacturing, service and operation management, and we're committed to making great contributions to the sustainable development of society," remarked Wang Min, Chairman and CEO of XCMG.

The PoA elaborated on XCMG's long-term vision of going green and low-carbon and key missions that are already carried out actively to explore engineering technologies in the hope of creating net-zero carbon values for global construction:

• New energy, low-carbon technologies and products: XCMG has developed more than 50 items of green, energy-saving core technologies, building production clusters of new energy and low-carbon products as well as pilot unmanned, intelligent application scenarios.
• Green and intelligent manufacturing: XCMG has three green factory demonstration companies accredited by the Ministry of Industry and Information Technology of People's Republic of China and one green supply chain demonstration company, XCMG Hosting Machinery is the industry's first company to pass the level-4 certification of intelligent manufacturing capability maturity. XCMG also took the lead in establishing two green design product standards.
• Green supply chain: continues to promote energy conservation, emission reduction, recycling, green and low-carbon management throughout the supply chain, paying more attention to product life, energy consumption, hazardous substances and abandonment management. XCMG has recycled over 10,000 packaging materials in the recent two years.
• Reducing energy consumption and emissions: XCMG has built a smart, full lifecycle energy management system. In 2020, the company's energy consumption per 10,000 yuan of output value has been reduced by 29.3 percent compared to data from 2015. The construction of centralized collection and treatment facilities for fumes and dust is covering all of the welding areas, and the company has invested over US$47.4 million to reinforce VOC emissions in coating over the past three years.

Short term, XCMG aims to reduce comprehensive energy consumption per unit by 15 percent and carbon emission by 26 percent by the end of 2025, compared with 2020. By 2027, XCMG aims to reach peak carbon within its operation boundaries and lower comprehensive energy consumption per unit by 18 percent and carbon emission per unit output by 31 percent compared to 2020. Total energy consumption wise, XCMG expects to grow self-generating photovoltaic power and wind power seven-fold, and market penetration of new energy products will reach 25 percent.

In the long term, XCMG strives to be carbon neutral within its operation boundaries by 2049, promoting emission reduction of upstream and downstream enterprises across the industry chain and establishing a low-carbon, clean, safe and efficient green energy system with internationally advanced energy utilization efficiency.